What is a Capital Gain? A capital gain is the difference between the acquisition price and the selling price of anything including a capital item. It is the appreciation in the value of the item from the time it was bought to the time of selling it. Hence, a capital gain in a property is the difference between the selling price and the cost of the property. Actual cost of the property The cost of the...
This is not a new tax being introduced by the finance bill 2012 The Income Tax CHAPTER 470 of the laws of Kenya has always given KRA the powers to Tax Rent Income just like any other Income. The following is an extract from the said Act. “Section 3 (1) Subject to, and in accordance with, this Act, a tax to be known as income tax shall be charged for each year of income upon all the income of a person,...
The Law Rental income is taxable under Section 3(2) (a) (iii) of the Income Tax Act, Cap 470 Laws of Kenya. In addition, rent on non-residential buildings (Commercial) is also taxable under Section 5 and 6 VAT Act Cap 476. What is Taxable? All rent, premium or any other consideration for use or occupation of property. Rates of Taxation Taxation rates are dependent on whether the taxable person is an...
What is considered rental income for tax purposes? Who is taxable? Is taxation on rental income a new law? Is this a new tax and will the burden be passed to tenants through increase in rent? I have not been declaring tax on rental income so I am in a dilemma on how to compute the tax due. The media has given the impression that rental income will be taxed at 30%. Please clarify this. I am...
Copied directly from http://www.coulsonharney.com/News-Blog/Blog/A-snapshot-of-the-new-land-laws Introduction The issue of land, its ownership, use and management is a highly emotive one in Kenya and was one of the key issues that drove the need for a new constitution. Following lengthy deliberations and a comprehensive public participation process, a new constitution (the “Constitution”) was...
Inheritance in Kenya is guided by the Law of Succession Act Cap 160 of the Laws of Kenya. Under this Act, a person may either die testate or intestate. A person dies testate when he has made a valid will on how his property should be distributed on his death. A person dies intestate when he has not made a will on how his property will be distributed on his death or his will has been invalidated. If a...
Subdivision is the act of dividing land into pieces that are easier to sell or otherwise develop. This requires control for the following reasons. To ensure that each subplot has adequate access roads, open spaces and social infrastructure. To ensure that the proposed population density can be served by the available services. To ensure planned and coordinated development so as to avoid...
DEFINITIONS (Section 2) 1.1 “contribution” means monetary and non-monetary contribution including- domestic work and management of the matrimonial home; child care companionship management of family business or property; (See definition below) farm work; 1.2 “family business” means a...